NEW DELHI: Vodafone India has told the Telecom Commission and the Empowered Group of Ministers that incumbent mobile phone companies cannot be asked to pay a market-determined price for converting existing spectrum to technology-neutral for 20 years, as per an order issued by a telecom tribunal.

In separate communications to the and Telecom Commission chairman R Chandrasekhar and finance minister P Chidambaram, Vodafone's India arm said that the order states that the guidelines were not finalized and were therefore not 'enforceable' against a GSM licence.

Chidambaram heads the inter-ministerial panel or EGoM that must guide and supervise the entire process of airwaves auction. The panel had sent its final recommendations on spectrum pricing to the Cabinet, which will take a call later this evening.

The Telecom Disputes Settlement & Appellate Tribunal Wednesday dismissed Vodafone's plea, challenging a clause in the draft guidelines on spectrum liberalisation in the upcoming auction, on the grounds that the guidelines were still a proposal. It added that Vodafone could challenge the rules once they are finalised.

Citing specific parts of the order, Vodafone said that it reconfirmed its position that its licences were indeed technology-neutral or liberalized.

"...there cannot be any doubt or that the licenses granted to the Petitioners are technology neutral and consequently they are entitled to use the spectrum allocated to them pursuant to or in furtherance of the license granted in their favour in any manner whatsoever and irrespective of the nature of spectrum," TDSAT had said.

Vodafone went on to add that, "any attempt to unilaterally amend the technology neutrality/ already liberalized spectrum, enshrined in the Agreement may constitute an arbitrary and illegal action. Also, any further decision that is contrary to this well entrenched principle will be equally arbitrary, illegal and bad in law."

Vodafone had moved the tribunal last month against a clause in the draft guidelines issued by the telecoms department (DoT) on July 3, which mandated mobile phone companies to pay a market-determined price to convert existing airwaves they hold into liberalised spectrum for 20 years. It had urged the court to quash DoT's decision.

Liberalised spectrum means mobile phone companies can offer any service on any airwaves. The auctions are to take place following the cancellation of 122 mobile permits by the Supreme Court this February.

A Vodafone India spokesman said that TDSAT had given liberty to approach it as and when the occasion rises.

There's been a persistent face-off between mobile phone companies on one side and sector regulator Trai and DoT on the other, on 2G airwaves auction price parameters ever since the country's apex court revoked some 122 mobile permits granted by former telecoms minister A Raja under dubious circumstances in 2008.

The country's third largest mobile phone company by subscribers had said in its petition that the proposed rules, in particular the spectrum liberalisation clause, had been framed 'without application of mind' and were "unfair, unreasonable, unjust, unconscionable, arbitrary, voilative of the petitioner's contractual and legal rights and even otherwise illegal."

Last week, Reliance Communications had also moved the tribunal against the government's auction rules that mandated a CDMA player to bid for only one slot of 1.25 MHz of spectrum, as against GSM players who can bid for two such lots.